Field
This invention relates to a medium of exchange. More particularly, to a medium of exchange that is not separated from an item of value associated with that instrument and is further not fixed in value.
Description of the Related Art
Mediums of exchange, such as bonds and currency, are backed by something of value, be it a company, or government, promise to pay or something of value, such as precious metal. Until Jan. 30, 1934, United States Federal Reserve notes were redeemable for gold or silver. As of that date, they were no longer redeemable for gold and the notes have not been redeemable in silver since the 1960's. However, as the medium of exchange is separate from the item of value backing the instrument, the value is tied to the confidence the market has in the issuer.
A medium of exchange that is not separated from the item of value is Equity Trade Note that contains one tenth of a troy ounce of 99.9% pure gold laminated between security paper and a polymer. At a gold price of $1,500 per troy ounce, the “Equity Trade Note” has a value of about $150.
While the Equity Trade Note carries its value with the medium of exchange, it has a fairly high value and does not provide for denominations other than the one fixed by the initial selection of gold content. It is to be expected that many transactions will require a value amount other than that fixed in the note. There remains a need for a medium of exchange that is not separated from the backing item of value that has variable value and authentication mechanisms sufficient to retain the trust of consumers.